What is a periodic inventory system? What kind of businesses use periodic inventory systems?

Q: How is Day Sales in Inventory calculated?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: How are days’ sales in inventory calculated, and what does it measure?

A: Numbers of days to sell inventory: This ratio is determined as the number of days a particular…

Q: Explain the two methods of inventory tracking: inventory turnover ratio and number of days' sales in…

A:

Q: What is the main source of income for a buying and selling company? 2. Between the operational cycle…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Perpetual inventory system: Perpetual Inventory System refers to the inventory system that maintains…

Q: 46. When a company uses the periodic inventory system in accounting for its merchandise inventory,…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: What effects on a retail store's accounting equation occur when merchandise returned by customers is…

A: Introduction:- The following Accounting Equation used for preparation of balance sheet as follows…

Q: Is an adjusting entry needed for inventory shrinkage when using the periodic inventory system?…

A: Definition:

Q: Can a business change from one inventory costing method to another any time they wish? Explain.

A: change in the method of valuation of inventory is a change in accounting principle.  for example…

Q: hich of the following accounts is unique to a merchandising entity that uses the periodic inventory…

A: The periodic inventory system does not record each transaction at the time they occurred. It…

Q: How can we prepare financial statements for a company using periodic inventory system?

A: To calculate or account inventory there is two method, perpetual and periodic inventory method. In…

Q: How can we track purchases and sales when we don't know how much inventory we have until the end of…

A: Sales=Units Sold×Selling Price Purchases=Cost of Goods available for sale-Begining Value of…

Q: Which of the following statements about a periodic inventory system is true? a. The periodic system…

A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…

Q: What is a perpetual inventory system? What kind of businesses use perpetual inventory systems?

A: There are two types of inventory methods that are perpetual and periodic.

Q: The inventory accounts of a manufacturer are ________________, _____________________and…

A: The inventory accounts of a manufacturer are _______Raw material inventory_, Work in process…

Q: A company using a perpetual inventory system that returns goods previously purchased on credit would…

A: What is perpetual inventory system? It is a system which record the changes in inventory(purchased…

Q: When using the periodic inventory system, which inventory costing method(s) always produces the same…

A: Under the periodic inventory system. the inventory is counted usually at the end of the period and…

Q: What is the name of the account used to record purchases of merchandise inventory?

A: The concept of merchandise inventory is associated with cost of goods that is in hand and available…

Q: Of what significance is inventory turnover to a retail store?

A:

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: • Explain why there isn't there a "Cost of merchandise sold" expense for a service business.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Why is it important to periodically take a physical inventory when using a perpetual inventory…

A:

Q: Define days' sales in inventory (what do the results mean). Provide an example

A: Days sales in inventory means how much days company will take to convert its inventory into sales.…

Q: Why do companies that use perpetual inventory systems alsotake an annual physical inventory? When is…

A: Perpetual inventory system The perpetual inventory system can be defined as the inventory system…

Q: What is the average collection period, the average inventory processing period for GCI Company?

A: Turn over ratios are the ratios used for measuring the ratio of assets and liabilities in relation…

Q: What accounts are used to recognize a retailer's purchase from a manufacturer on credit? Assume the…

A: Perpetual inventory system is a method under which the movement of inventory is recorded at…

Q: Under the perpetual system of inventory, the Inventory account is debited at each purchase and…

A: Perpetual Inventory System:-it is a system of inventory valuation where inventory gets calculate on…

Q: What is the cost of inventory of Z Company on December 31?  What amount of cost of goods sold…

A: In weighted average method of inventory valuation, the price of the inventory is based on…

Q: A perpetual inventory system will always give updated balances for: Goods Available for Sale and…

A: Perpetual inventory system is a type of inventory system in which all transactions related to…

Q: If a company uses a periodic inventory system, which of the following entry or entries are required…

A: When a physical inventory count is done, a periodic inventory system simply updates the general…

Q: In comparing the accounts of a merchandising company with those of a service company, what…

A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…

Q: In the periodic inventory system, all purchases of merchandise during the period is recorded on what…

A: There are two type of inventory systems in the business. One is perpetual inventory system and other…

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: What is the inventory system called that discloses the amount of inventory on hand ONLY at the end…

A: The periodic inventory system is an inventory system that involves a periodic physical inventory…

Q: Discuss how discounts are recorded in a perpetual inventory system, and compare how discounts are…

A: There are two methods to determine the inventory of the company purchased. 1. Perpetual inventory…

Q: How do you find an inventory report for manufacturers?

A: Answer :- The inventory of manufacturer is reported in "Current assets" part of the balance sheet of…

Q: What are the two journal entries involved when recording the sale of inventory when using the…

A: Perpetual inventory system refers to the inventory system that maintains the detailed records of…

Q: What is the meaning of perpetual or periodic inventory system

A: Normally  the materials purchased for production may not be  fully consumed. There is some quantity…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.